Bill Gunderson’s Daily Market Observations Friday 10-4-2019

The futures were down about
Friday 10/4/19=DJIA +372 NASDAQ +110 U.S. 10yr=1.54%
Lowest Unemployment Rate Since 1969
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Minnesota Oct. 15, 16, & 17-Bill Gunderson and his team will be at the Radisson Blu-Mall of America. Call (855)611-BEST or visit our website to make an appointment.
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Daily Wrap: Today’s non-farm payroll report was a little softer than expected, but it dispelled the notion of a looming recession for now. The market reacted with a bit 300-point plus gain for the DJIA. During my live radio show yesterday, I pretty much called the bottom of the market when the S&P 500 hit its 200-day moving average. I also reiterated my current S&P 500 target price for 6-12 months down the road.

Trading: I did not do any trading today. I just sat back and enjoyed big moves in many Best Stocks Now.

Tweets: I was very active on Twitter and StockTwits today. I sent out tweets on MDC, IMPUY, EW, DXCM, DLTR, COUP, CHTR, BLD, ANSS, ANPDY, AMAT , and AAPL.
Here was the report that moved the market today.

Jobs growth cools in September
• September nonfarm payrolls: +136K vs. +145K consensus and +168K previous (revised from +130K).
• Unemployment rate: 3.5% vs. 3.7% consensus and 3.7% previous.

Stocks lift higher as unemployment falls to 50-year low
• The three major U.S. stock average continue climbing as the number of jobs created last month falls short of estimates even as unemployment improved to a 50-year low.
• Meanwhile, White House economic adviser Larry Kudlow says, "There could be positive surprises" coming out of next week's U.S.-China trade talks in Washington.
• “I’m not predicting. I’m just saying don’t rule that out,” he said in an interview with Bloomberg Television.

Economy still in a 'good place, but beware of too low inflation, Fed head says
• The U.S. economy is still in "a good place," said Fed Chair Jerome Powell in comments at a Fed Listens session, " Our job is to keep it there as long as possible."
• Still, he's aware of the challenges facing the central bank, namely low growth, low inflation, and low interest rates.
• Interest rates and inflation that are too low could leave the Fed with less ability to deal with the next economic downturn, Powell said.

India trims interest rate and GDP forecast
• India's central bank cuts its key interest rate to 5.15% from 5.40% and said it will maintain its accommodative stance "as long as necessary to revive growth, while ensuring inflation remains within the target range."

I agree.

Charter upgraded on broadband opportunity
• KeyBanc upgrades Charter Communications (NASDAQ:CHTR) from Sector Weight to Overweight with a $515 target.
• The firm cites CHTR's "ample opportunity" to increase its broadband penetration.
• KeyBanc notes that Charter has "significant" FCF generation that can go towards repurchases, sees upsides in the recent price increases, and thinks the mobile expansion should drag less on profitability next yea

I agree.

Workday bull says buy ahead of catalysts
• Mizuho Securities says investors should buy Workday (WDAY +0.4%) ahead of the analyst day on October 15, which happens within the company's four-day user conference. The firm says both events could serve as a "major catalyst."
• Management will likely address growth concerns by "highlighting the different layers of growth opportunities." The company will also introduce product innovations and expansions.
• Mizuho maintains a Buy rating and $225 target. The company has an Outperform average Sell Side rating.

Bill Gunderson

Bill Gunderson

Bill Gunderson is a wealth manager, syndicated financial talk show host, and author of the Best Stocks Now -- one of the top 10 best selling financial aps in the world.

He is a frequent guest on local and national media, including CNBC, Fox Business, Fox News, Bloomberg, Barron's, Forbes, and others.

His wealth management business caters to high net worth individuals clients all over the world. He would be happy to look at your portfolio.

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